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Roll Board Inc. manufactures several models of high-quality skateboards. The companys ABC...

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Accounting

Roll Board Inc. manufactures several models of high-quality skateboards. The companys ABC system has four activity cost pools, which are listed below along with their activity measures and activity rates:
Activity Cost Pool Activity Measure Activity Rate
Supporting direct labour Number of direct labour-hours $ 8 per direct labour-hour
Batch processing Number of batches $ 44 per batch
Order processing Number of orders $ 87 per order
Customer service Number of customers $ 92 per customer
The company just completed a single order from SkateCo for 1,300 entry-level skateboards. The order was produced in 28 batches. Each skateboard required 1.7 direct labour-hours. The selling price was $185 per skateboard, the direct materials cost was $68.70 per skateboard, and the direct labour cost was $17.60 per direct labour-hour. This was the only order from SkateCo for the year.
Required:
Prepare a report showing the customer margin on sales to SkateCo for the year.

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